Top 10 GPOs by staffed beds

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Healthcare's ongoing push towards clinically integrated networks (CINs), health information exchanges (HIEs) and value-based care continues to drive consolidation across the industry. At the same time, providers need allies to help shoulder new technical and financial burdens. As a result, the purchasing power of affiliated facilities stands to reach new heights. 

Group Purchasing Organizations (GPOs) managing the buying needs of healthcare providers help hospitals reign in some of that spending by leveraging the collective purchasing power of member facilities to negotiate savings on purchased goods and services. 

97% of hospitals have an affiliated GPO, and research from the Healthcare Supply Chain Association (HSCA) suggests that those GPOs decrease the cost of healthcare by as much as $55B each year.  

According to the data in the Definitive Healthcare platform, the top 10 GPOs by the number of staffed beds are: 

10 GPOs with the most staffed beds 

Rank 

GPO 

State 

# of Beds 

Vizient 

TX 

449,085 

Premier Inc 

NC 

341,968 

HealthTrust Purchasing Group (HPG) 

TN 

173,557 

ASCEND 

NC 

102,968 

Intalere 

MO 

51,956 

Sourcewell  

MN 

40,570 

SURPASS 

NC 

34,982 

Department of Veterans Affairs 

DC 

25,384 

The Resource Group 

MO 

21,512 

10 

Greenhealth Exchange 

VA 

18,604 

Fig 1.Data from Definitive Healthcare's Hospitals & IDNs platform. Data accessed March 2022. 

Which GPO has the greatest number of staffed beds? 

Vizient has the greatest number of staffed beds with a total of 449,085. Premier Inc comes in second with 341,968 staffed beds, followed by HealthTrust Purchasing Group (HPG) with 173,557 staffed beds. Together, Vizient, Premier Inc and HealthTrust Purchasing Group (HPG) account for 77% of the total staffed beds across the top 10 GPOs.  

Additionally, across the top 10 GPOs, there are 1,260,586 total staffed beds and an average of 126,059 staffed beds. 

Healthcare consolidation and GPOs 

It's worth noting that healthcare's consolidation trend also impacts the GPO market. In April of 2021, Vizient completed its acquisition of Intalere. Vizient represents the largest member-owned healthcare company in the country, whose diverse array of member health care organizations represents almost $110 billion in annual purchasing volume.       

Some critics argue that the GPO buying process, funded by administrative fees paid by vendors (typically 1-3% of total negotiated contracts), favors larger vendors with higher price points and limits new vendor competition in the market. 

Nevertheless, GPOs represent large-scale savings for many in the healthcare supply chain. Based on an economic analysis of CMS data, the HSCA expects GPOs to generate savings of up to $864 billion for the entire U.S. health system between 2013 and 2022. This includes $229 billion in Medicare savings and $169 billion in Medicaid savings. 

Learn more 

Healthcare Insights are developed with healthcare commercial intelligence from the Definitive Healthcare platform. Want even more insights? Start a free trial now and get access to the latest healthcare commercial intelligence on hospitals, physicians, and other healthcare providers. 

 

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